The number of active conveyancing firms in England and Wales has dropped below 4,000 for the first time.
Analysis of the conveyancing market by software provider Search Acumen found that larger brands are now dominating the sector, with the top 200 conveyancing firms controlling more than 39% of the market, a record share, while the top 1,000 now control more than three-quarters.
The research found that transaction volumes were down 4% on a quarterly basis over the first three months of 2019, as the market processed 255,989 cases – down 6% annually.
Despite the slowdown in overall activity, the average number of cases conveyancing firms dealt with in the first quarter was up 11% on five years ago at 65.
Andy Sommerville, director of Search Acumen, said: “The consolidation of the market continues in conveyancing. However, while larger firms are processing a higher share of activity, it would be a mistake for them to rest on their laurels.
“The beginning of 2019 has marked a dampening of overall current activity.
“During the lull in transactions we encourage those companies who have strengthened over the last few years to pause and take stock of the current landscape to avoid missing out on key opportunities resulting from the current industry shifts.
“As smaller firms that tend to operate on a more local scale are increasingly squeezed out of the market, we risk seeing a consequent fallout of their specialist knowledge. It is here that technology can play a crucial role.
“Continued efforts by the Government to digitise property and land data – coupled with innovative and efficient ways to add to and maximise the growing pool of information – mean that conveyancers and lawyers can benefit from better insights at their fingertips.
“Our analysis shows that the average number of cases conveyancing firms dealt with in the first quarter of 2019 still remains relatively healthy even in the face of market headwinds.
“However, we expect a prevailing sense of uncertainty until the ongoing political fog lifts across the UK.
“There may be challenging times ahead if firms want to grow beyond their current level of business, and it will be even more critical that companies take the reins and prepare now if they are to weather any future storms.”
Comments (3)
Difficult as it is to believe standards continue to drop. Just when you think these factories can’t get any worse I am finding they are. Piling too high, no good experienced staff etc etc. Yes we know who they are, yes everyone has heard it all before but it is not helping our poor clients get their house moves organised. As we speak I have been trying to exchange with one of them for one week, clients are tearing their hair out and because there is no communication I cannot tell them why we have not been able to tie their house purchase up.
One day I would really love someone from one of those awful firms to have the front to face his accusers and actually come on a messageboard/forum and attempt to justify, (from their clients point of view rather than commercially):-
1. Their dreadful service
2. The lack of competence
3. Why they cannot be trusted with anything they say during a transaction
4. Why it is impossible to build any working relationship with them to attempt to assist our clients
5. Why there are so many levels of administration before a file can exchange
6. How many levels are there, and how long can we competent Solicitors who can sign off our own files expect to wait for an exchange whilst their file is passed around desks?
I am not going to hold my breath waiting to hear from one of these faceless people.
They don’t care. They buy all their work from estate agents who also don’t care. It won’t change.
(It’s why the public should NEVER use a chain estate agent.)
So, sale to completion times are taking longer than ever before and as a complete coincidence, the bigger firms are taking a bigger share of the market.
Some of these companies have more volume but the quality of service on offer at companies that we all know without me naming them is blooming awful.